As alcohol consumption hits record lows in the U.S., Arizona entrepreneurs are launching new low-ABV and nonalcoholic beverages to meet shifting preferences. A 2025 Gallup Poll found that only 54% of Americans drink alcohol, down to a 90-year low, while the NoLo market reached nearly $1 billion in sales. Local producers like Smidge Beverage Co., Rhinestone Extra Light, and Chestnut Sports Club are offering lighter options for healthier social drinking.
The trend toward reduced alcohol intake is evident in recent data. An August 2025 Gallup Poll reported that 54% of Americans consume alcohol, marking a 90-year record low, influenced by health concerns over even moderate drinking. U.S. alcoholic beverage sales fell by 2.2% in 2025, according to The Spirits Business. Meanwhile, the nonalcoholic and low-ABV (NoLo) segment grew to almost $1 billion in U.S. sales that year, per NIQ, with 92% of purchases made by regular drinkers seeking healthier alternatives.
In Arizona, three producers are capitalizing on this shift. Adam O’Connor founded Smidge Beverage Co. in 2023, inspired by industry reports on nonalcoholic growth and Gen-Z's intentional drinking habits. Smidge offers vodka sodas at 2.5% ABV, 50 calories, and 1 gram of sugar, gluten-free and without artificial flavors. Flavors include Blackberry Cucumber, Pineapple Papaya, and Orange Blossom Strawberry. 'With Smidge, it’s all about keeping things at a good level, so fitting one in between your IPAs or cocktails helps you not to overdo it,' O’Connor said. Produced in Oceanside, California, due to state liquor laws, the drinks are distributed by Hensley across Arizona stores like AJ’s, Bashas’, and Total Wine. O’Connor, a fifth-generation Arizonan and childhood leukemia survivor, donates 2.5% of profits to pediatric research at Phoenix Children’s.
Dustin Johnson created Rhinestone Extra Light, a nonalcoholic beer with 5 calories, zero carbs, and gluten-free formulation, targeting 'rowdy moderation' for those not fully sober but avoiding heavy hangovers. At 44, Johnson sought a light alternative to standard NA beers, which often carry 90 calories and 13 grams of carbs. Flavors are an original light beer plus Mexican lime, desert grapefruit, and blood orange. Drawing from his cannabis industry background, Johnson partners with Soul Flower Dispensaries. Distributed by Hensley, it’s available at Sprouts, select Total Wines, and about 40 bars. 'At the end of the day, we’re just here in between the Old Fashioned or the joint, not judging, just here to help you maintain,' he noted.
Adam Zloto’s Chestnut Sports Club produces a Light Citrus Lager at 3.7% ABV, 90 calories, and 5 grams of carbs, brewed in Tempe by Zonafide Beverages. Designed for active lifestyles like pickleball, it provides full flavor without excess. 'You can have it in your hand all day, and it’s about as guilt-free as a normal beer can be without giving up any flavor,' Zloto said. The name nods to his San Francisco days. Cans appear at Sprouts, AJ’s, Total Wines, and bars like Gracie’s Tax Bar. These offerings reflect a broader push for balanced consumption in Arizona’s beverage scene.
